Four Financial Tips For Your Work Anniversary

We could all use a personal financial tip or two to help us get into better financial shape. Here are a few to use on your work anniversary to improve your financial standing.

Once each year you should: Review your current retirement account, account contribution and balances, then check with HR to find out if there are any changes in what you can do (Are you now eligible for a ROTH IRA? Take advantage of opportunities you didn’t have before, etc.) Review your life insurance policy, will or trusts, investments. Complete a financial review with an accountant/CPA and a financial advisor to find out what your tax liability currently is and what strategies you can implement to reduce it.

Examine Your Investment/Stock Portfolio

Look at all of your stocks and bonds. Are they all performing as well as they could be or should you sell one or more of them? Familiarize yourself with these terms: restricted stock units, incentive stock options and non-qualified stock options.

Ideally, you should get rid of any stocks in the non-qualified options pool before ten years. Don’t wait too long, because you expose yourself to more financial risk if you do. This should be one of the first personal financial tips you exercise every year.

Determine the vesting schedules for stocks in the restricted stock and incentive stock categories. With all stocks in these categories, you also need to discuss with your financial advisor how to reduce your tax liability.

Also, it’s best to have your investment portfolio reviewed by an experienced financial advisor to make sure you’re getting the best performance possible.

Decide How to Improve Your Work Skills

Here's one personal financial tip you may not have even considered. Look at your degree and how it contributes to your work performance. Are you maximizing your education? Are you thinking about returning to school to earn a master’s in your field? Have you considered earning an MBA?

If returning to school will help you add more knowledge and competence to your current job, it’s worth the financial investment and the time you will spend in the classroom. If you’ve been thinking that you could boost your earnings by returning to the classroom, act on this. Ask your employer if it will help by paying for a portion of your post-graduate education.

Ask for a Pay Raise

Work anniversaries are a good time to sit down with your supervisor to ask about getting a raise. After all, you’ve been in your job for one, five even ten years or more. With the accumulated knowledge you hold, you become increasingly valuable to your employer. Sit down and figure out a way of expressing this to your supervisor.

If you do get a raise, exercise the rule of 1/3 to the pay raise you receive: Invest 1/3 in savings or your retirement account. Devote 1/3 to taxes. Decide how you’re going to use the final 1/3 – use that money on something you’ve been wanting to do.

Look at the Current Job Market

Along with requesting a raise, your work anniversary is a great time to look at the current job market in your community. Assess your current situation, looking at your current salary and any bonuses you receive. If you are close to the ceiling for your job description or current pay, it may be time to look around your community for new employment. Even if you aren’t close to that pay ceiling, it’s a good idea to determine whether you might benefit from sending out your resume, especially if you can’t go back to school in the near future. Every time you look at a potential job, ask yourself if it helps you to move up and whether it uses all your skills and knowledge.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.